Mary Jo White has record of tough prosecutions

Jan. 24, 2013
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Mary Jo White in a 2002 file photo. / Suzanne Plunkett, AP

by Kevin McCoy, USA TODAY

by Kevin McCoy, USA TODAY

Mary Jo White, the aggressive New York attorney nominated by President Obama Thursday to chair the Securities and Exchange Commission, is accustomed to tough legal challenges.

When Sheik Omar Abdel Rahman and nine fellow Muslim militants were charged in a 1993 plot to bomb the United Nations and other New York landmarks, the Manhattan U.S. Attorney's office headed by White turned to a little-used seditious conspiracy statute from the Civil War era to prosecute the sprawling terrorism case.

The decision brought strong legal focus to a case that otherwise relied heavily on secret tapes and an Egyptian informant prone to self-aggrandizement.

A jury convicted the blind cleric and co-defendants, handing prosecutors and the federal government one in a series of major legal victories in terror cases stemming from the 1993 bombing of the World Trade Center.

Recounting White's record of successfully prosecuting terrorists, former Mob boss John Gotti and others, Obama called the cases "a pretty good run."

"You don't want to mess with Mary Jo," Obama said, adding that he was confident White would "complete the task of reforming Wall Street and making sure that American investors are better informed and better protected going forward."

The nomination of White, a 65-year-old lawyer and avid tennis player who has shuttled between jobs as a prosecutor and white-collar-crime defense lawyer, fuels expectations that the SEC will rev up its response to criticism that it hasn't been tough enough in overseeing the nation's securities laws and serving as Wall Street's sheriff.

The appointment also comes amid some criticism of Obama for an administration that features men in many top positions.

"Appointing a tough-as-nails former prosecutor like Mary Jo White responds to both of those concerns," says John Coffee, a law professor at Columbia University whose legal focus includes securities regulation.

If confirmed by the Senate, White would succeed Elisse Walter, an SEC veteran who has served as interim chairwoman since Mary Schapiro stepped down from the top job in December. Among others departing from Schapiro's tenure is SEC enforcement chief Robert Khuzami, who worked under White as one of the lead prosecutors in the Abdel Rahman case.

White was the first woman to head the Manhattan U.S. Attorney's office, a prestigious legal post she held for nearly nine years. During her time there and in an earlier stint as a federal prosecutor, she personally handled or oversaw cases ranging from the 1992 prosecution of Gambino crime family boss Gotti to the indictment of then-less-known terror leader Osama bin Laden for attacks on U.S. embassies in Africa.

Recently, White has been a partner at Debevoise & Plimpton, a top Manhattan-based law firm where she's overseen the 225-attorney litigation department. Her notable defense cases included representing giant hospital chain HCA during the SEC and Department of Justice insider-trading investigation of then-Senate Majority Leader William Frist. His family founded HCA. No charges were ultimately filed.

White also represented numerous corporations and individuals facing SEC enforcement proceedings. But her financial regulatory experience largely consists of serving as a director of the Nasdaq Stock Exchange and serving on its executive, audit and policy committees. Her husband, John White, is also a corporate attorney who served as director of the SEC's Division of Corporation Finance from 2006-2008.

If confirmed, White would be the first former prosecutor to head the SEC. Her prosecution background is expected to overcome any qualms about the brevity of her regulatory experience.

During Schapiro's tenure, the SEC reached major settlements with big Wall Street banks, including Goldman Sachs, JPMorgan Chase and Citibank. But critics said the penalties were small compared with the banks' revenue. And many complained that no senior executives were held accountable. Given her prosecution background, White could change that.

Sen. Carl Levin, D-Mich, who has often spotlighted financial wrongdoing as chairman of the Permanent Subcommittee on Investigations, Thursday praised White's public service. But he also pointedly added, "I hope to hear from her about her commitment to fully implement the critical financial reforms that arose out of the last financial crisis."

Capitol Hill Republicans, meanwhile, signaled they're interested in SEC action on a delayed JOBS Act rule aimed at making it easier for small firms to raise capital. At issue is lifting the ban on companies advertising unregistered securities.

Additionally, much of the SEC's pressing work involves writing new rules. The agency is seeking stricter regulation for money-market mutual funds and is shaping the so-called Volcker Rule, which would bar banks from making certain trades for their own profit.

"No one knows what her positions would be" on the mutual funds and Volcker issues, said Coffee.